What is a good age to take on your first mortgage if you are not in a long term relationship?

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Posted by Briana Thompson (MONEY FORUMS: 4, Answers: 2)
Asked on May 6, 2016 9:46 pm
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Hi Brianna! So glad you wrote! This answer is not as absolute an answer than if you had written, for example, “When is my income tax return due?”, but I think it is a great question that brings up a lot of good points.

If a person is in a place where they are likely to stay for awhile in a steady job that pays enough to cover a mortgage, it can be a very smart choice to buy rather than rent. When you buy, the money you pay each month builds equity (which is another word for “value” or “ownership”) instead of just being paid to a landlord and being gone. Home ownership can come with its own headaches in that you have to pay the property tax and insurance and all the repairs, but in the end you OWN the place, which you don’t with renting. I don’t think it matters if a person is in a long-term relationship or not as long as they can afford the mortgage payments and the upkeep of the home. I also don’t think age matters – three of my nephews bought homes when they were in their early 20’s!

Some other reasons you might want to rent rather than buy:

-Not sure if you are going to be living there for the next few years
-Unsure about job status and worried you might be laid off
-Unsure about job status because you think you’ll be promoted soon
-Not set with your significant other – either have one you aren’t sure about or are hoping to find someone
-Don’t really like the area you’re currently living in – everyone says you “should love it,” but you just don’t
-College loan debt or bad FICO score that might cause you to get a higher than normal mortgage loan rate
-Don’t want to be tied down
-Don’t want to deal with maintenance, repair, decorating, yardwork, etc.
-Don’t want to have to pay real estate taxes if you are in an area that has high taxes
-A parent or sibling is not doing well and there is a chance you may need to move nearer to them to help them

Those are some key reasons why renting might be better than buying at certain times in your life even when “common sense” says buy and no matter what age or relationship status you are in. I hope this helps! Best wishes to you in whatever you decide. And please write back if we can help you with other financial issues.

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Posted by Kathryn Hauer (MONEY FORUMS: 0, Answers: 18)
Answered: May 7, 2016 3:29 pm